BOSTON--(BUSINESS WIRE)--The increasing popularity of the smart home is confirmed today by new
research from Strategy
Analytics showing that global demand for smart home devices
will exceed sales of smartphones by 2023.Consumers worldwide
bought 663 million smart home devices in 2017, and this will increase to
1.94 billion in 2023, when sales of smartphones will be 1.86 billion.
The research, “2018
Global Smart Home Device Forecast”, includes various
categories of smart home device, including smart speakers, security
cameras, smart light bulbs, smart door locks, digital thermostats,
gateways and sensor devices. Demand is being driven by lower device
prices, compelling user applications and services, improved user
experience and rapid technology development.

The fastest growing category in 2018 will be smart speakers, such as
Amazon Alexa and Google Home, with a growth rate of 109%. Other fast
growing segments include smart light bulbs (such as the Philips Hue),
connected smoke detectors, smart door locks (such as Amazon’s August
Smart Lock), gateways and hubs and security cameras (such as Google’s
Nest Cam).

Fast Growing Smart Home Device Categories

Global Annual Sales of Smart HomeDevices (M Units)

2017

2018

Growth rate

Smart speakers

33

69

109%

Smart light bulbs

20

29

47%

Connected smoke detectors

35

45

29%

Smart door locks

9

11

27%

Smart home gateways and hubs

20

25

25%

Home security cameras

43

54

25%

Other smart home devices (includes sensors and detectors, smart
switches and plugs, thermostats, controllers, digital health and
other devices)

504

599

19%

Source: Strategy Analytics’ Smart Home Strategies service, June 2018

“The emergence of the smart home as a popular concept in recent years
has led to a wealth of new device opportunities for vendors and
technology developers,” says Bill Ablondi, Director, Smart Home
Strategies. “The smart home device landscape is still in its formative
stage and multiple players are fighting to establish a presence. The
scale of future demand suggests that there are huge opportunities for
vendors which are able to take the lead in improving how people manage
and organize their homes.”

The report concludes that successful smart home device vendors should
identify which barriers to adoption they need to address to unlock
growth, which bundles of products and services will resonate with
consumers, and toward which segments of the market they should focus
their resources.